Arbitrator reconsiders HOA super lien issue

A few weeks ago, in my column, I addressed the continuing dispute of the collection of delinquent assessments between buyers and associations. Many of you recognize the litigation entitled, Higher Ground LLC, which has impacted hundreds of associations in Southern Nevada.

I stated that arbitrator Leonard Gang, a local attorney, had basically ruled on all of the legal issues in favor of the homeowner associations. Just about the same time, an advisory opinion was produced by the Nevada Real Estate Division wherein the division indicated that collection costs are not included within the super priority lien in Nevada Revised Statutes 116.3116.

As a result of this opinion, Gang has granted the claimant’s motion for reconsideration.

He will reconsider his previous interpretation of NRS 116.3116, and what may be included in an association’s superior lien.

The parties are to submit briefs on the issue and submit these briefs to the arbitrator by Feb. 11.

Gang has not yet decided whether to entertain oral arguments, or whether he will simply issue a decision on the interpretation of the super priority lien under the statute.

What does this mean to your particular HOA? If your association is directly involved with this litigation, and the arbitrator issues a new decision, it could mean extensive discovery by your legal counsel in order to determine the claimant’s alleged damages.

In fact, it is possible that there would be individual arbitration hearings for each of the named associations (more than 200 of them).

As you can see, the “dance” continues. No matter what happens, we all know the final decisions will be made by the Nevada State Supreme Court.

Note: Speaking of dances, if you have not heard of the special charity dance and entertainment extravaganza show, “Love is in the Air” being held at the Cashman Center Friday, you may want to contact the people at the Las Vegas Dance Starz, a local nonprofit group supporting the arts, at 702-838-5131. It’s for a good cause.

Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 385-3759, email is support@hlrealty.com.

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